Small business owners are feeling better about the direction of the economy.
That's the conclusion drawn from a survey conducted by Bank of America of 1,001 small business owners with annual revenue between $100,000 and $5 million.
Two years ago, a similar survey showed that only 45 percent of small business owners believed their local economy would improve in the next year. A year ago, 50 percent predicted area growth. But this year, a solid majority — 62 percent — were optimistic about the local economic outlook.
Owners are slightly less cheery about the state of the national economy, however. Fifty-six percent expect the nation's economy to improve in the next year. It's nevertheless a big improvement over last year, when only 45 percent said the same thing.
Attitudes on the global economy are less positive still, with only 45 percent predicting improvement in the next year. But in both 2014 and 2013, only 31 percent foresaw global economic growth.
Younger business owners are significantly more upbeat about the economy. Seventy-four percent of millennial and Gen X business owners anticipate local economic growth, 70 percent predict national economic growth and 63 percent expect the world economy to improve.
New business owners are similarly more optimistic. Seventy-one percent expect good things from the area economy, 65 percent are optimistic about the national economy and 54 percent expect global growth.
It may be tempting to assume that younger, less experienced business owners would have to be optimistic to start a company. But two years ago young business owners were even more pessimistic about the direction of the economy than their elders, and new business owners' thoughts on the economy last year were in line with established business owners.
Far more businesses say they plan to hire; 67 percent now compared to 51 percent a year ago.
Robb Hilson, small business executive for Bank of America, said that while business owners report a number of “lingering fears,” including minimum wage hikes, the impact of next year's presidential election and an increase in interest rates, the concerns do not appear large enough to prevent them from hiring.
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